This post was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed department of S&P Global.

For all the talk of low stocks, and car dealerships tacking
” market adjustments” on top of MSRP, there were almost a.
half-million systems of leftover 2022 design year cars still.
advertised for sale in the United States heading into the very first.
weekend of December. That is on top of the 2023 vehicles that have.
been showing up on dealer lots.According to S&P Global Mobilitys analysis of United States dealership.
marketed stock data, mainstream brand names Ford, Chevrolet, Ram,.
and Jeep had about 300,000 units of 2022 designs advertised as.
offered for sale the week ending December 4. Those four brand names.
represent 71% of 2022 marketed inventory listed by mainstream.
brand dealerships – and 66% of all dealer-advertised inventory when.
consisting of high-end marques.Among high-end brands, Mercedes-Benz and Lincoln still revealed the.
most remaining 2022 cars in dealership advertised inventory,.
according to the S&P Global Mobility analysis.While most car manufacturers generally alleviate off production in late.
summer to shift to the new model year, and clear out the last.
of their old designs by Christmas, certain automakers in fact have.
seen their 2022 stocks increase in October and November.” Model year discipline has ebbed,” stated Cheryl Woodworth,.
speaking with associate director for S&P Global Mobility. “With.
the chip lack, stock control is not as meticulous as it.
used to be.” Is running old stocks into the new design year a bad thing?
It can be for car manufacturers, however it might spell retail relief for.
customers. With 22 designs bring the preconception of being “older” -.
even if the 2023 design is unchanged – that can mean dealerships are.
incentivized to burn out the zero-miles 22s.” The longer you wait to alter over your model year, the more it.
hits your recurring worths in regards to tougher grading,” Woodworth.
said.Some dealerships are using below-MSRP discount rates on cars that.
brought sticker-price-plus Monroney labels just months prior to. And.
with consumer demand subsiding due to external financial forces such as.
inflation and recession-related layoffs, the pressure to move the.
metal increases.Usually, the inventory arc for each model year follows a.
predictable curve, peaking in spring as production strikes its stride,.
and after that coming down in summertime during the annual selldown and the.
model year shifts in September and October. However supply chain.
chaos has made it impossible for some automakers to follow.
tradition.That stated, with certain components of the supply chain still in.
flux, it may make good sense for manufacturing connection to continue.
If a 2023 minor design modification includes a part, developing 2022 models.
that is not readily available, Woodworth said.In November, Ford was still providing 2022 Escapes to.
dealers from its Louisville factory, as the 2023 small model.
modification is still increase. The very same continuation of late.
production 22 models uses to the Ford Bronco Sport and Lincoln.
Corsair, which share a lot of their foundations with the Escape.
platform.Remaining 2022 systems are typically particular to specific models. In.
the market for a luxury SUV? The models with the greatest remaining.
2022 design year systems are the Mercedes-Benz GLC and Lincoln.
Corsair.Why the excess 22 Mercedes GLCs? Its still waiting for a 2023.
refreshing – the national mbusa.com website still wasnt listing.
the 2023 as offered on December 15 – and as such 2022 designs are.
still in strong supply. Among luxury brand names, Mercedes had 33% share.
of staying 22 models still marketed the week ending December.
4, while Lincoln represented 22% share of leftover luxury.
22s. That said, Mercedes dealers have done a strong task of selling.
down its 2022 inventories from mid-summer in anticipation of the.
23 model getting here. And other key Mercedes volume models – GLE,.
S-Class, and C-Class – are primarily represented by 2023 design.
production.Supply chain missteps likewise are affecting inventories in other.
ways. Tens of countless so-called “ghost units” of the F-150 and.
Chevrolet Silverado have rolled off the assembly line however were.
missing out on important parts, and have been gathering in parking area.
near their particular factories till they can be launched. On top.
of those unfinished systems, Ford dealers had nearly as many F-150s.
advertised the week ending December 4 as they performed in August in.
September. When the ghost systems finally get their required parts.
and enter wholesale inventory – Ford hopes it will occur by the.
end of December – that will include to the pressure to clear out the.
22 designs at the dealership level.The combined black-swan events of COVID, semiconductor.
scarcities, and the Russian invasion of Ukraine interrupted.
conventional manufacturing and supply norms – the latest downstream.
impact being the overrun of previous model-year production and.
inventory. How the industry can recuperate to its regular cadence.
depends on its adaptability to these continued disturbances.